ENERGY SERVICES OF AMERICA FILES ANNUAL REPORT

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Energy Services of America Corporation (OTCQB: ESOA) reported fiscal 2021 revenues of $122.5 million and net income of $8.8 million, with earnings per share at $0.52. The company saw a backlog of $72.2 million as of September 30, 2021. A legal verdict of $5.8 million was awarded post-fiscal year, pending judgment. During the year, Energy Services expanded its operations and strengthened its balance sheet, particularly through loan forgiveness. The company anticipates growth in fiscal 2022.

Positive

• Revenue increased from $119.2 million in 2020 to $122.5 million in 2021.
• Net income available to common shareholders rose significantly to $8.8 million compared to $2.1 million in 2020.
• Adjusted EBITDA improved to $3.8 million from $8.1 million the previous year.
• Backlog of $72.2 million indicates strong future revenue potential.
• Expansion into gas and water distribution, general contracting, and solar installation.

Negative

• Gross profit decreased to $12.9 million from $13.5 million year-over-year.
• Income from operations fell to a loss of $892,622 compared to a profit of $3.7 million in 2020.
• Selling and administrative expenses rose significantly to $13.8 million from $9.8 million.

HUNTINGTON, W.Va., Dec. 29, 2021 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (OTCQB: ESOA), generated revenues of $122.5 million, adjusted EBITDA of $3.8 million, net income available to common shareholders of $8.8 million and fully diluted earnings per share of $0.52 for the fiscal year ended September 30, 2021.  The Company had backlog of $72.2 million at September 30, 2021. 

Subsequent to the end of the fiscal year, the Company was awarded a $5.8 million verdict in a previously disclosed lawsuit against a former customer.  The Company anticipates that a final judgement order will be issued during the first calendar quarter of 2022, which can be appealed up to thirty days after the judgement is entered. To date, the Company has not recognized the award in its financial statements.  

Douglas Reynolds, President, commented on the announcement. "I am pleased with the progress we made during fiscal 2021 as we continue to build the foundation for future growth. During the year we expanded our gas and water distribution business geographically via acquisition and moved into both general contracting and solar installation in our core geographic markets. At the same time our balance sheet was strengthened with the forgiveness of the PPP loans, and we were able to simplify our capital structure by converting our preferred stock." Reynolds continued, "Looking ahead we will continue to invest in the business and add talented people and business lines to grow the company and we anticipate that fiscal year 2022 will result in increased growth and profitability."

Below is a comparison of the Company's operating results for fiscal year 2021 compared to fiscal year 2020: 

			Year Ended		Year Ended
			September 30, 2021		September 30, 2020
Revenue			$            122,465,826		$            119,194,440
Cost of revenues			109,544,804		105,693,209
	Gross profit		12,921,022		13,501,231
Selling and administrative expenses			13,813,644		9,831,578
	Income from operations		(892,622)		3,669,653
Other income (expense)
	Interest income		286,645		53,332
	Paycheck Protection Program loan forgiveness		9,839,100		-
	Other nonoperating expense		(289,330)		(239,862)
	Interest expense		(557,320)		(486,246)
	Gain on sale of equipment		681,653		579,326
			9,960,748		(93,450)
	Income before income taxes		9,068,126		3,576,203
	Income tax (benefit) expense		(29,129)		1,143,186
	Net income		9,097,255		2,433,017
	Dividends on preferred stock		284,238		309,000
	Net income available to common shareholders		$                8,813,017		$                2,124,017
	Weighted average shares outstanding-basic		13,621,406		13,804,835
	Weighted average shares-diluted		16,988,424		17,238,168
	Earnings per share
		available to common shareholders	$                       0.647		$                       0.154
	Earnings per share-diluted
		available to common shareholders	$                       0.519		$                       0.123

Please refer to the table below that reconciles adjusted EBITDA with net income available to common shareholders:

		Year Ended		Year Ended
		September 30, 2021		September 30, 2020
Net income available to
common shareholders		$              8,813,017		$              2,124,017
Add: Income tax (benefit) expense		(29,129)		1,143,186
Add: Dividends on preferred stock		284,238		309,000
Add:  Interest expense		557,320		486,246
Less: Non-operating income		(10,518,068)		(392,796)
Add: Depreciation expense		4,661,789		4,395,362
Adjusted EBITDA		$              3,769,167		$              8,065,015

Certain statements contained in the release, including without limitation statements including the words "believes," "anticipates," "intends," "expects" or words of similar import, constitute "forward-looking statements" within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such factors include, among others, general economic and business conditions, changes in business strategy or development plans and other factors referenced in this release. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

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SOURCE Energy Services of America Corporation

FAQ

What are the 2021 financial results for ESOA?

In fiscal 2021, Energy Services of America (ESOA) reported revenues of $122.5 million and net income of $8.8 million.

How did ESOA's backlog perform in 2021?

As of September 30, 2021, ESOA had a backlog of $72.2 million, indicating future revenue potential.

What was the legal verdict amount awarded to ESOA?

Energy Services was awarded a legal verdict of $5.8 million against a former customer.

What is the earnings per share for ESOA in 2021?

The fully diluted earnings per share for ESOA in 2021 was $0.52.

What challenges did ESOA face in 2021?

ESOA faced a decrease in gross profit and an operating loss of $892,622 due to increased expenses.